Publications

Plum Insight: Ensuring value with Connected Capex

Whilst discounted-cash-flow methods are prevalent for project appraisal within many firms, overall performance, influenced by market pressures and managements’ own self interests, is often focused on short-term measures such as quarterly earnings. In this Insight paper, we examine the efficacy of capital investment in the telco industry; by definition, ‘investment’ suggests a focus on the longer term. Our analysis and experience indicates that, in many cases, investment value is being lost, due to inefficient allocation—not a healthy situation in an industry already under significant pressures. We introduce a structured approach, which we refer to as Connected Capex, enabling telcos to stem value leakage and ensure that capital is allocated effectively—according to well-defined business needs.